A ltd issued 1,000, 5% debentures of ₹100 each redeemable at a premium of 10%. The amount of interest for one year will be:
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹5,000.
Total Debentures = 1000
Per value of debenture = 100
Interest = 5%
Total of amount = 1,000 x 100
= 1,00,000
Amount of interest = 1,00,000 x 5/100
= 5,000